SHRI P.P. BHASKARE, M.A. ELECTRICALS, PARAKKAL, MAHE - 673 310 Vs. THE COMMISSIONER OF INCOME TAX (CENTRAL), 5TH FLOOR, KANDMKOLATHY TOWERS M.G. ROAD, COCHIN-682 011

JUDGEMENT

(1.) The appellant has 'wholesale-cum-retail' business in electrical goods at Mahe, Pondicherry - a proprietary concern. For the Assessment Year (AY) 2002-03, he submitted a return of income under section 139(1) of the Income Tax Act, 1961 ('the Act') declaring his total income as Rs. 1,05,314/-; the tax due as per the assessment was remitted. He also filed returns and remitted tax for other assessment years till 2008-2009.

(2.) On 30.05.2007, the IT authorities, exercising their powers under Sec. 132 of the Act, searched the appellant's house. It was in connection with their search initiated against M/s. Abdul Gadhafi and others, said to be his business associates in other ventures. Thereafter, the authorities issued notice under Sec. 153A r/w Sec. 153C to the appellant (the Assessee). In response, he declared his income for AY 2002-03 as Rs.2,32,840.00.

(3.) Relying on the documents allegedly found during search-- especially, a bill book relating to the period from 1.04.2006 to 30.07.2007--the authorities estimated the assessee's income as follows: (a) undisclosed business income: Rs.8,89,348.00; (b) agriculture income treated as income from other sources: Rs.50,000.00; and (c) income from other sources (interest on lending): Rs.2,34,000.00.